4 ms·
Either tether is trading at a discount due to liquidity issues like a closed-end fund or due to real credit issues (fraud).
by hidenotslide 9y ago
Either tether is trading at a discount due to liquidity issues like a closed-end fund or due to real credit issues (fraud).
- brokensegue 9y agowell it's the former? right?
- hidenotslide 9y agoI have no clue, you'd have to ask people who sell below par. If they are selling because they can't access the normal withdrawal mechanism (e.g. US customers or people in a rush relative to processing delays) then it is the former. If they are speculatively shorting it is more likely the latter. It could be both: people who can't do normal withdrawal and think there is at least 2% chance of fraud.
- brokensegue 9y agothere is no normal withdrawal mechanism.
- deleted 9y ago[deleted]
- hidenotslide 9y agoI don't know the details. Multiple places seem to imply there is at least some planned mechanism, that's all I was referring to. E.g. from the white paper: "Tethers may be redeemable/exchangeable for the underlying fiat currency pursuant to Tether Limited’s terms of service". I don't have a position here and no axe to grind, but parting from your auditors is in many cases a significant red flag.
- mcintyre1994 9y agoThey have Web pages for buying tethers/selling them, but they're always closed and just say contact them if you're a $x million investor. So the claim is presumably that the billions of tethers printed are all backed by institutional investors. I just had a look at the site now and the registration system is apparently being rebuilt, so there's no path to buy/sell through them today.